Wholesale prices post biggest gain in 6 months

June 17, 2008


As reported in AP


Wholesale prices post biggest gain in 6 months, propelled by energy and food costs


WASHINGTON (AP) — Wholesale prices bolted ahead in May at the fastest pace in six months as energy and food costs marched higher.


The Labor Department reported Tuesday that its Producer Price Index, which measures the costs of goods before they reach store shelves, shot up 1.4 percent in May. That was up from a modest 0.2 percent rise in April and marked the biggest increase since November.


However, stripping out energy and food prices, which can swing widely from month to month, the “core” rate of inflation rose 0.2 percent in May, an improvement from the prior month’s 0.4 percent increase. That suggested that other prices were fairly well behaved.


The overall inflation rate of 1.4 percent was higher than the 1 percent rise many economists were forecasting. But the increase in core prices matched their expectations.



Our perspective:


Food and energy are becoming the basic necessities nowadays. Throw in medical and other insurances and that seems to be all we are working for. To cover the basics.


We have to take a long hard look.


It seems that the last 20 – 30 years our economy has skyrocketed and at the same time it is becoming unaffordable. This would tell you that we are not addressing the issues properly.


We must be willing to look outside the box to define and create real solutions that work and benefit all, just not a few.


We do this in business everyday.


Hutchinson Business Solutions prides itself on “ Thinking out of the box,” creating opportunities to provide savings and increase efficiencies.


Whether it is Business Taxes, Energy, Communications or Insurance; we are addressing these topics with an eye towards the future. 


We would like to know your thoughts? You may email george@hbsadvantage.com


Hutchinson Business Solutions     …….     Your CFO on the Go


Creating Opportunities Today…..Providing Savings for Tomorrow


Visit us on the web www.hutchinsonbusinesssolutions.com




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